United Airlines trims US capacity amid 'challenging economic times'

United Airlines is cutting domestic capacity from the summer in a signal of declining demand for travel in the US.

 

Four percentage points of scheduled domestic capacity is being removed from the third quarter of the year “in response to the current demand environment”.

 

The airline is also continuing to make “prudent adjustments” to the utilisation rate of its fleet, including “ongoing reductions in off-peak flying on lower demand days”. 

 

United “expects to continue this approach into the fourth quarter of 2025”. 

 

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More: Travel agents report dip in US demand

 

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Additionally, a total of 21 aircraft will be retired earlier than previously planned.

 

Forward bookings over the last two weeks have “remained stable”, with premium cabins up 17% and international up 5% year on year.

 

“United believes our proven ability to win brand-loyal customers is a competitive advantage and will make United resilient in any economic environment,” the carrier said as it posted its best first-quarter financial results in the past five years, “despite a challenging macroeconomic environment”.

 

The airline reported that international travel remained strong as it delivered pre-tax profits for the three months to March 31 of $478 million against a loss of $164 million in the same period last year as total operating revenue rose 5.4% to $13.2 billion.

 

“United continued to build brand loyalty in the first quarter and saw strong growth across its diversified revenue streams,” the airline said. 

 

Premium cabin revenue rose 9.2%, business revenue was up 7.4% and revenue from Basic Economy was up 7.6% year on year. 

 

“United’s operation started 2025 stronger than any previous year since 2021,” the airline noted. “In the first quarter the airline flew the largest schedule by available seat miles in its history, carrying a record of over 450,000 customers per day on average.”

 

Ongoing investments include the six additional aircraft gates at Chicago O’Hare airport, expected to be awarded to United this autumn based on a preliminary assessment by the city’s department of aviation.

 

The airline is also expanding at San Francisco and plans to have “the fastest Wi Fi in the sky” with Starlink installed on its entire United Express fleet by the end of the year. 

 

Chief executive Scott Kirby said: "Our strategy coming out of the Covid pandemic was simple - build the best airline in the world to attract brand-loyal customers. The people of United Airlines have executed and built that airline. 

 

"We will continue to execute our multi-year plan that has allowed United to thrive in any demand environment. It has given us industry-leading margins in the good times and we expect to expand our lead further in challenging economic times. 

 

“Our ability to win brand-loyal customers and the resiliency of our business is a competitive advantage, and we are accelerating our investments in our product, service, technology and experience to further expand that lead."